Learning in Cournot oligopoly - An experiment

This experiment was designed to test various learning theories in the conte xt of a Courmot oligopoly. We derive theoretical predictions for the learni ng theories and test these predictions by varying the information given to subjects. The results show that some subjects imitate successful behaviour if they have the necessary information, and if they imitate, markets are mo re competitive. Other subjects follow a best reply process. On the aggregat e level we find that more information about demand and cost conditions yiel ds less competitive behaviour, while more information about the quantities and profits of other firms yields more competitive behaviour.